SHANGHAI, Aug. 7 (SMM) – LME lead is predicted to move at lows between $ 1,670-1,730 per tonne next week, SMM lead group reckons.
Technical indicators still point downside and LME lead meets upside resistance at the 5 and 10-day moving averages. Slipping positions also mirror that longs exit market. But LME lead has dropped to a 5-year low. Hence, shorts will not enter market at this time. As such, LME lead should stay in current low ranges.
SHFE 1510 lead should range between 12,650-12,900 yuan per tonne next week.
China spot lead may stay stable between 13,100-13,300 yuan per tonne next week, citing sufficient supply and growing demand. Lead smelters will remain active to import concentrate with high SMM/LME lead price ratio and sell lead to get more cash, sending supply up. Operating rate at motive battery makers should rise modestly next week due to falling temperatures, driving demand up.
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